Jump to content
The forums have been archived and are now read only. Years of great info saved for your reading pleasure. Thank you! Visit us on Facebook: https://www.facebook.com/NakedInvestor/ ×
The Naked Investor Forums
MJ Smook

Short offer letter - allowables

Recommended Posts

The short offer letter refers to 2 ALLOWABLE costs.

 

  1. Maintenance and Repairs: your tenant/buyer is responsible for all ALLOWABLE maintenance and repair costs during the term of this Agreement.
  2. Closing Costs: Purchaser will pay all ALLOWABLE closing costs.

Can anyone please tell me if these are LEGAL allowables and if so what are they?

 

Thanks for your support

Share this post


Link to post
Share on other sites

The reason I use allowable is because what a tenant/buyer can and cannot be responsible for regarding maintenance and closing costs will vary from locale to locale. So this provides some wiggle room.

For example, let's say a t/b decides to exercise their option and is going with a VA loan. Regardless of what our agreement might say, the VA will require the seller to pay certain closing costs. Therefore, the t/b will pay all allowable closing costs.

Share this post


Link to post
Share on other sites

×
×
  • Create New...